A life insurance policy was issued to John Doe on January 1, 2022. On December 15, 2023, John tragically passed away due to a heart attack. During the claims investigation, it was discovered that John unintentionally omitted a significant detail about his family's history of heart disease on his application, which would have classified him as a higher risk. Based on standard Canadian contestability periods, what is the most likely outcome?

Question: A life insurance policy was issued to John Doe on January 1, 2022. On December 15, 2023, John tragically passed away due to a heart attack. During the claims investigation, it was discovered that John unintentionally omitted a significant detail about his family's history of heart disease on his application, which would have classified him as a higher risk. Based on standard Canadian contestability periods, what is the most likely outcome?

Answer options: ✅ The insurer will pay the death benefit in full, as the contestability period has passed.

• The insurer will deny the claim due to a material misrepresentation, despite its unintentional nature.
• The insurer will pay a reduced death benefit, proportionate to the premium John should have paid.
• The insurer will void the policy, refund all premiums paid, and deny the claim.

Correct answer: The insurer will pay the death benefit in full, as the contestability period has passed.

Explanation: In Canada, the standard contestability period for unintentional material misrepresentation is two years from the policy's effective date. Since John died on December 15, 2023, and the policy started January 1, 2022, more than two years have passed, so the insurer is generally obligated to pay the death benefit.